Savanna Hoffman
The military offers several programs to help service members pay off their student loans. The Army, for example, offers the Loan Repayment Program (LRP), which is available to soldiers who meet certain requirements and agree to a term of service of three years or more. Under the LRP, the Army will repay up to \$65,000 of a soldier's qualifying student loans. Additionally, active-duty service members are eligible to have their interest rates lowered to 6% on all student loans taken out prior to their military service. Other branches of the military, such as the Air Force, also offer loan repayment programs or scholarships to help with the cost of education.
| Characteristics | Values |
|---|---|
| Military Student Loan Repayment Programs | Loan Repayment Program (LRP), Student Loan Repayment Program (SLRP), Public Service Loan Forgiveness (PSLF), Income-Driven Repayment Plan, Air Force College Loan Repayment Program (CLRP), Federal Perkins Loan Cancellation Program |
| Military Student Loan Forgiveness | Public Interest Loan Forgiveness (PILF), Health Professions Loan Repayment Program |
| Military Tuition Assistance Programs | Army Credentialing Opportunities Online (COOL), Army Tuition Assistance, Army Reserve Officers’ Training Corps (ROTC), GI Bill, Green to Gold |
| Military Scholarships | U.S. Air Force Scholarships, U.S. Army Scholarships |
| Military Student Loan Interest Rates | Active-duty servicemembers are eligible to have their interest rate lowered to 6% on all student loans taken out prior to their military service |
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What You'll Learn
Military student loan repayment programs
The military offers several programs to help service members pay off their student loans. Two of the most well-known available options include the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program.
Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is for active-duty members who agree to serve in specific roles or occupations. The Army's Loan Repayment Program (LRP) is a special incentive offered to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier's qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP. Enlisting Active Duty Soldiers are eligible for the Loan Repayment Program if they meet the following conditions: Soldiers must agree to a term of service of three years or more, must decline enrollment in the Montgomery GI Bill, and must have the Loan Repayment Program guaranteed in their enlistment contract. The Army will repay 33 1/3% of the outstanding principal balance, less taxes of the Soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) for up to three years total.
Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program is for service members who work in qualifying public service positions. If you plan to work in the military or another area of public service for 10 years and you have federal loans, you likely qualify for an income-driven repayment plan and loan forgiveness through the PSLF program. This program forgives all student loan debt after the borrower makes 120 qualifying payments while working full-time with the military or another qualifying non-profit.
Other Loan Repayment Programs
Some branches of the military offer their own loan repayment programs or incentives to help recruit and retain personnel. These programs may vary depending on the needs of the branch and the specific job roles. For example, the Air Force College Loan Repayment Program (CLRP) is available to any person enlisting with past student loan debt. It awards up to $10,000, made in yearly payments of 33.33 percent of the debt or up to $1,500, whichever is higher. The Army Credentialing Opportunities Online (COOL) program helps Soldiers find and pay for certifications or licenses for a broad range of Army and private-sector jobs. The Army’s Tuition Assistance program helps Soldiers in active duty, the Army Reserve, or the Army National Guard with up to $4,000 annually towards school or professional training. The Army also offers scholarships for medical and dental students.
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Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is one of several programs offered by the military to help service members pay off their student loans. This particular program is for active-duty members who agree to serve in specific roles or occupations.
The SLRP enables employees to reduce student loan debt incurred for courses of study already completed by the employee or, in the case of Parent PLUS loans, by the employee's child. To be eligible, employees must occupy a pre-qualifying position or have arrived at a pre-qualifying post during the annual open season application period. They must also have certain outstanding loans authorized by Title IV of the Higher Education Act of 1965 or Title VII of the Public Health Service Act with combined balances of $5,000 or more. Additionally, employees must commit to at least three years of service with the Department via a service agreement and maintain satisfactory performance and conduct.
The Army, for example, will repay 33 1/3% of the outstanding principal balance, less taxes, of a soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) for up to three years total. Soldiers must agree to a term of service of three years or more and decline enrollment in the Montgomery GI Bill. The first payment is made after the member has completed one year of service, and loans must not be in default before entering active duty or during the repayment process. Payments made under the SLRP are considered taxable income.
It is important to note that not all employees are eligible for the SLRP. Temporary employees, political appointees, consular adjudicators on limited non-career appointments, and eligible family members serving on family member appointments are among those who are not eligible for the program. Additionally, employees on leave without pay or another unpaid status at the time of application are generally ineligible for the SLRP incentive.
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Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program was established by Congress in 2007 to encourage Americans to enter the public service sector. The program promises to forgive the remaining student loans of individuals who complete 10 years of service in qualifying public service positions and make 10 years of minimum payments. The PSLF program is available to service members in the military who work in qualifying public service roles.
To be eligible for PSLF, individuals must have federal student loans, such as Direct Loans or Federal Family Education Loans. Private loans are not eligible for PSLF, but there are other programs like the Student Loan Repayment Program (SLRP) that can assist with private loan repayment. It is important to note that PSLF requires 10 years of consecutive payments, and the loans must not be in default.
Under PSLF, the government will forgive all government-subsidized loans after the completion of the 10-year service and payment period. This includes loans made under the Federal Family Education Loan Program and Direct Loans. Individuals can make income-driven payments, which means that monthly payments are based on their income. This can be especially beneficial for those with lower incomes or those who experience financial hardship.
Additionally, the military offers its own loan repayment programs, such as the Loan Repayment Program (LRP) and SLRP. These programs provide incentives for highly qualified applicants and active-duty members who agree to serve in specific roles or occupations. The LRP offers repayment of up to $65,000 of student loans over a period of up to three years, with certain conditions and eligibility requirements. The specific benefits and eligibility criteria may vary depending on the military branch and job role.
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Military student loan forgiveness
Military service members and veterans are eligible for educational benefits such as the G.I. Bill, and they may also be eligible for student loan forgiveness. The military offers several programs to help service members pay off their student loans.
The Loan Repayment Program (LRP) is a special incentive offered by the Army to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier's qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP. Active-duty soldiers are eligible for the Loan Repayment Program if they agree to a term of service of three years or more and decline enrollment in the Montgomery GI Bill. The Army will repay 33 1/3% of the outstanding principal balance, less taxes of the Soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) for up to three years.
The two most well-known student loan repayment programs are the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. SLRP is for active-duty members who agree to serve in specific roles or occupations. PSLF is for service members who work in qualifying public service positions.
Other forgiveness programs include the National Defense Student Loan Discharge, which applies to service members who were in a location that qualified for hostile-fire or imminent-danger pay. Only Perkins loan borrowers are eligible for this program. Those whose military service finished before August 14, 2008, can have up to 50% of their loans forgiven, while those who served after that date can have 100% of their loans forgiven.
Additionally, some branches of the military offer their own loan repayment programs or incentives to help recruit and retain personnel. These programs may vary depending on the needs of the branch and the specific job roles.
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Federal Perkins Loan Cancellation Program
The military offers several programs to help service members pay off their student loans. The Student Loan Repayment Program (SLRP) is for active-duty members who agree to serve in specific roles or occupations. The Army, for instance, offers the Loan Repayment Program (LRP) as a special incentive for highly qualified applicants. Under the LRP, the Army will repay part of a soldier's qualifying student loans.
The Public Service Loan Forgiveness (PSLF) program is another option for service members who work in qualifying public service positions. Additionally, some branches of the military offer their own loan repayment programs or incentives to help recruit and retain personnel. These programs may vary depending on the needs of the branch and the specific job roles.
The Federal Perkins Loan Cancellation Program is a type of forgiveness benefit available to Federal Perkins Loan borrowers who perform certain kinds of public service or are employed in particular occupations. The program offers up to 100% cancellation of the Perkins Loan over a four or five-year period. A percentage of the loan is canceled after the completion of each year of qualifying service. The rate for most cancellation types is 15% of the loan amount (plus any interest that accrues on that amount during the year) for the first and second years, 20% for the third and fourth years, and 30% for the fifth year.
Perkins loan holders who work in public service positions are eligible to have their debt partially or fully erased through a federal forgiveness program after working in approved public service jobs and making qualifying payments. Some of the qualifying public service positions include Peace Corps and Action Program (including VISTA) volunteers, teachers in low-income serving schools, teachers of special education, teachers of math, science, foreign language, and bilingual education, early childhood education providers, certain employees of public or non-profit private child or family service agencies, and members of the U.S. Armed Forces serving in areas of hostility.
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Frequently asked questions
Yes, the military offers several programs to help service members pay off their student loans.
Some of the student loan repayment programs offered by the military include the Student Loan Repayment Program (SLRP), the Public Service Loan Forgiveness (PSLF) program, the Air Force College Loan Repayment Program (CLRP), the Health Professions Loan Repayment Program, and the Loan Repayment Program (LRP) offered by the Army.
The Student Loan Repayment Program (SLRP) is available to active-duty members who agree to serve in specific roles or occupations. The program provides up to \$65,000 in loan assistance, with payments of 1/3 or \$1,500 (whichever is greater) made annually towards the remaining original unpaid principal balance.
The Public Service Loan Forgiveness (PSLF) program is available to service members who work in qualifying public service positions for a total of 10 years. This program forgives all student loan debt after the borrower makes 120 qualifying payments while working full-time.
Most of the programs offered by the military are applicable to federal student loans, with some options available for private loans as well. It is important to carefully review the eligibility criteria and loan types covered under each program before applying.
